FTSE 250 housebuilder Bellway has warned that the government’s revived Help to Buy scheme, named Your First Home, could slow the housing market in the near term. The company suggests that the period leading up to the scheme's launch may encourage prospective homebuyers to delay their purchasing decisions.
Jason Honeyman, chief executive of Bellway, told shareholders that while the proposed Your First Home scheme has the potential to support first-time buyer demand, its immediate impact on the UK's housing market slowdown is uncertain. He noted that customer demand remains constrained by affordability pressures, including mortgage interest rates above prior-year levels and wider economic uncertainty.
The Your First Home scheme is designed to offer first-time buyers a 20 per cent equity loan towards a 2.5 per cent deposit, with an initial interest-free period. Andy Burnham has stated the programme aims to help young people access the housing ladder.
Despite ongoing market challenges, Bellway reported a "robust" performance for the year ending July, with total housing completions growing by 11 per cent to 9,695 homes. This led to a 14 per cent increase in revenue to £3.2bn and a 22 per cent rise in pre-tax profit to £270m.